Setoff of Losses

Hi. Gd Evening...

Pl let me know can the how the ST Capital loss, LT Capital Loss from Business and Loss from Other Sources is treated ? how is it set-off .

Can STCL be setoff against LTCG ?

Regards,

Patricia

Replies (1)

Ms.Patricia

Good Evening

As per the provisions of section 74 of Income-tax Act, 1961 Loss under the head capital gains arose on transfer short term capital asseet i.e short term capital gains can be set off against capital gain of any other capital asset;

Loss arose on transfer of long term capital asset i.e. long term capital loss should be set off only against capital gain arose on tranfer of long term capital asset only i.e. long term capital loss cannot be set off against short term capital gain.

If the loss cannot be set off during the year the loss can be carried forward to succeeding assessment year.

No capita loss can be carried forward for more than eight assessment years.

I am herewith attaching a word document containing section 74 of the Income-tax Act, 1961 for your easy reference.

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